An asset manager is making the valuation exercise of Uppy equity shares. The asset managers estimation of the Free Cash Flow to Firm (FCF) for the period 20212025 is illustrated in Table 2.

The target capital structure is 55% equity and 45% debt. The estimated cost of equity and estimated cost of debt (gross of taxes) are 8.2% and 5%, respectively. The estimated corporate tax rate is 25%. The FCF is expected to grow at an annual nominal rate of 1.75% in perpetuity.

1. Calculate the expected Enterprise Value of Uppy at the end of the year 2021. Discuss your answer.

2. At the end of the year 2021, the company is expected to have (i) interest-bearing debt of 950,000, (ii) cash and equivalents of 1,025,000, (iii) minority interest of 300,000, (iv) 425,000 of financial investments, and (v) 150,000 outstanding shares. The current market price of Uppy is 12 per share. Compute the expected equity value per share at the end of the year 2021 (round to zero decimals), and based on it, provide your investment recommendation. Explain your answer.

Table 2

Year	2021	2022	2023	2024	2025
FCF ()	52,000	53,420	55,230	56,020	57,500